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Former Member
Jul 29, 2010 at 05:18 AM

GL Account conversion from Balance sheet account to P&L



We would like to change one GL Account from Balance sheet account to P&L. The GL account is Divident paid and organization paid divident in year 2009 and this account currently maintained as balance sheet account. This Balance of 2009 is now carry forwarded to 2010. But logically this account should be maintained as P&L Account and the amount should be deducted from retained earning account.

So how can we convert this account to P&L account type. Do we need to first offset or reverse the entry which took place in Balance sheet account. Once the balance is zero, then can we convert into P&L account.